Members of the real estate industry have been celebrating the most recent federal-court ruling involving PHH Corporation. That decision seems to expand a RESPA safe harbor for services actually performed. But that ruling, while appearing to favor the industry, could cause as many problems as it solves.In a recent decision, the full United States Court of Appeals for the D.C. View Full Post

If an escrow agent wrongly sends money to a cyber criminal, the agent will probably be liable for the loss. But what if one of the parties to the escrow, the buyer for instance, is duped by a cyber scam? Is the escrow company on the hook for that? View Full Post

To class action lawyers, the much maligned Maryland title agency Genuine Title, LLC, has been a gift many times over. That one company has spawned eight class actions and two public enforcement cases. But, after four years of exhaustive litigation, the federal judge presiding over the class lawsuits has finally thrown them out. View Full Post

Whether cyber insurance protects you from the prevailing scam affecting real estate companies today—social engineering—might depend on which state’s law governs your policy. It doesn’t have to be that way.
In the typical social-engineering scam, a hacker gains access to a stream of emails, normally through phishing (the use of fraudulent emails or messages that trick an authorized user into revealing his password). View Full Post

Last week, the Consumer Financial Protection Bureau (CFPB) released its four-year strategic plan. Based on what that document says, members of the real estate industry can breathe easy about the regulatory environment—for now. View Full Post

For years, ambitious class-action lawyers have tried to criminalize the business of captive reinsurance, with varying degrees of success. Recent decisions from federal courts in Pennsylvania and the District of Columbia suggest that these lawsuits’ heyday might finally be over.
In the Pennsylvania case, Menichino v.View Full Post

This past week, the real estate industry was rocked again by the latest development in the epic court battle between PHH Corporation and the Consumer Financial Protection Bureau. Many observers predict that the U.S. Supreme Court will weigh in on the matter. View Full Post

Last week, Mick Mulvaney, the acting director of Consumer Financial Protection Bureau, emailed his staff and explained his vision for the agency. His plan amounts to this: we’ll vigorously penalize those who cross a bright red line of legality—but leave everyone else alone. View Full Post

This past week, the Consumer Financial Protection Bureau announced that it will ask for public input on its operations, on everything from enforcement, supervision, rulemaking, market monitoring, and education activities. It’s not hard to guess which topics are likely to generate the most comments. View Full Post

According to the FBI, in 2016, incidents of cyber fraud in the real estate industry shot up by 480%. Criminals somehow figured out the real estate process around that time and have been wreaking havoc ever since. So, as they say, there are two types of businesses: ones that have already been hacked and ones that will be. View Full Post

Last week, regulators from 49 states and the District of Columbia announced a $45 million settlement with PHH Mortgage Corporation. Left unsaid was how that settlement would become legally enforceable and whether it would fully exonerate PHH. The answers to those questions are: the settlement will become enforceable through the Dodd-Frank Act and, no, PHH could face further liability. View Full Post